Wall Street Journal very negative re Argentina’s economy

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Argentina’s economy is headed for another collapse no matter what the outcome of October’s complex presidential race, according to a Wall Street Journal editorial.

WSJ’s Mary Anastasia O’Grady writes:

“Argentina is headed for another collapse. The test for the next president will be how to juggle the economic adjustment while restoring institutional credibility and recovering a culture of tolerance.”

The piece published Monday lays out the three candidates vying for PresidentChristina Kirchner’s seat after 12 years of control by Kirchners — Christina and her deceased husband, Nestor. Kirchner can’t run due to term limits, but could return in the 2019 election. Her party’s candidate is Buenos Aires Province Gov. Daniel Scioli, who could face a runoff with center-right Buenos Aires MayorMauricio Macri. The distant third candidate is Sergio Massa, a congressman and former mayor of the city of Tigre. BA Mayor Macri has promised to lift capital controls and free up exports, which would improve international investor confidence.

WSJ lists Argentina’s woes, and the silver lining:

” … a recession, capital flight, double-digit inflation and gathering economic storms in the country’s two big export markets, Brazil and China … Kirchner’s successor will inherit an unsustainable fiscal deficit, a collapsing peso and the nation’s world-wide reputation as a deadbeat. Yet the vision of Mrs. Kirchner departing the Casa Rosada in December is producing a sense of relief that outweighs any potential catastrophe.”

Post available in: English